Individual Health Insurance vs Family Floater Plan: Which One to Buy?

Buying health insurance is a significant decision. It is important for a health insurance policy buyer to pay emphasis to all that they want their policy to have so that last-minute inconveniences can be prevented. However, it is also important to have an understanding of what type of health insurance to buy other than the coverage to make a worthwhile decision. So, if you are still confused between individual health insurance and family floater plan, uncovering the difference between both is a must for you to end up with the right choice.

Which Plan to Buy Between Individual Health Insurance and Family Floater Insurance?

Many people take the wrong decision or a hasty decision at the time of choosing a policy type. If you too are unable to make a choice between individual health insurance and a family floater plan, know that learning about both the policy types is a must for you. So, to have a better understanding, let us shed light on individual health insurance first.

What is an Individual Health Insurance Plan?

Individual health insurance, being true to its name, provides coverage for a single individual. Therefore, only the person insured is eligible to avail of coverage benefits and other advantages of the policy. The sum insured amount in the case of individual health insurance is restricted to the insured individual only. An ideal choice for people looking forward to covering only themselves, individual health insurance serves as a strong financial support system at the time of an unexpected medical emergency situation.

What is a Family Floater Health Insurance Plan?

As per its name, family floater health insurance provides coverage for the entire family. It can also be said that the coverage benefits under the family floater plan are available for all the members of the family. The sum insured amount covers the entire family. Health insurance policy buyers looking forward to securing their health as well as their family’s opt for floater policies to gain the maximum benefit in adverse medical situations.

Individual Health Insurance vs Family Floater Health Insurance - Difference

The key differences between both the policies are:

1. Coverage: While individual plans are dedicated to one person only, floater policies are dedicated to the complete family.

2. Sum Insured: The sum insured in individual plans is restricted to one, while in floater policies the entire family is covered under a single sum insured amount. So, if under the floater plan, one member makes a claim, the remaining sum insured is available for others.

3. Premium: While in individual plans, the premium is decided as per the age of the single insured individual, in the case of floater plans, the premium is decided while keeping the age of the eldest member in mind.

Who Should Buy an Individual Health Insurance?

Individual health insurance policy should be an ideal choice for:

• People looking forward to securing themselves only.
• People looking for a sum insured amount that is sufficient for themselves.
• People with higher possibility or risks of ailments and health issues.
• People having bigger families where floater policy coverage may not be sufficient.
• People with elders where the floater sum insured amount may be insufficient.
• People willing to pay different premium amounts for different family members.

Who Should Buy a Family Floater Health Insurance?

Family floater health insurance policy would be a good choice for:

• Young couples.
• People who have small or nuclear families.
• People looking for a cost-effective health insurance option.
• People willing to pay a single premium for all family members.
• People unwilling to manage different individual policies for different members of the family.
• People who want to cover their parents under the same policy like theirs.
• People who do not want to miss out on policy renewal date that is quite common in the case of individual plans.

What’s Common Between Individual and Family Floater Plans?

Needless to say, both individual health insurance and family floater insurance have their set of advantages. What most health insurance policy buyers do is buy family floater health insurance policy for self, spouse, and kids and cover their parents using individual health insurance. Doing so gets everyone in the family covered without high premium payments or making compromises of any kind, be it on the sum insured amount or coverage benefits.

Final Word

Do not be quick to arrive at a decision. Before making a final call between individual health insurance and a family floater plan, be sure of your specific medical needs keeping yourself as well as your dear ones in mind. Do check both policies for inclusions, exclusions, waiting period, and other aspects so that you are satisfied with what you purchase at the end. Being specific and clear about your choice will make sure you are at your comfortable best, at the time of policy purchase as well as filing the claim.

So, what are you waiting for? Go ahead and choose what’s best for you today!

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.